An unsecured car loan, is a personal loan where the lender does not generally use the car as security backing for the loan. The unsecured car loan can be used to purchase cars older then 5 years.
Interest rates on unsecured car loans are higher as they do not use the car as security for the loan. And lenders know that if they try to sell an older car pricing can vary wildly depending on the condition of the car at the time of sale.
Be aware that, many Lenders regularly advertise what seems like a competitive rate. Normally using terms like "Personal Loans from ..." However, once you apply for the unsecured car loan, your circumstances can be taken into account and the rate you end up with may not be so competitive.
It can also be worthwhile to buy a newer car and actually achieve lower repayments. So before rushing out to purchase a new car, or a new car to you, give us a call and we can give you a couple of different quotes for the different scenarios. You can then make your purchase with bargaining power knowing your finance is sorted.